FEBRUARY 2014

Press Review February 2014

EURO-ASIA M&A TRENDS

In 2014, a survey taken on more than 1,000 M&A professionals showed that the industries expected to have the most M&A activity (from most to least) are: Technology/Media/Telecommunications, Healthcare/Pharmaceuticals/Life Sciences, Financial Services, Energy, Consumer Markets & lastly, the Diversified Industrial Sector.

China continues to perform strongly with M&A transactions soaring in volume and continuing to rise in value. A report has shown that deal volumes have increased by 37% while volume jumped 17% in value in 2013, a strong indication for growth in 2014. While the energy & resources sector continues to dominate as the prime investment focus for Chinese acquirers, consumer & leisure sectors are fast catching up.

North America & Western Europe continues to jostle for prime position in the western hemisphere. Although the number of deals in Western Europe has increased by 31%, North America takes top spot for share of deal value with 34%. Renewed interest in regional consolidation is shown in the increase in share of deal values in Southeast Asia from 6% to 11%.

FOOD & BEVERAGE

Beverage

GLOBAL BEVERAGES & FOOD (India) raises funds from GOLDMAN (US) and MITSUI (Japan)

GOLDMAN SACHS, MITSUI GLOBAL INVESTMENT & others will pick up stakes worth approximately USD 50 M in GLOBAL BEVERAGES & FOODS PVT. LTD. The funds would be used to bring global technology for manufacturing & set up the distribution network.

February 20th / The Hindu


Food

WESTBRIDGE (India) took minority stake in DFM FOODS (India)

WESTBRIDGE CAPITAL PARTNERS has acquired 24.9% of DFM FOODS, a leading Indian snack foods manufacturer best known for Crax Corn Rings. The private equity firm has bought 2.49 million shares from a promoter shareholder for a total consideration of USD 10.3 M.

Revenue: USD 39 M (LTM from Sep 2013)
EV/Revenue: 1.4x
EV/EBITDA: 12.7x

February 5th / AVCJ

DANONE (France) to double stake in MENGNIU (China) to 9.9% for USD 665 M

DANONE has agreed to invest around USD 665 M to more than double its stake in China MENGNIU DAIRY CO LTD to 9.9%. This partnership will help DANONE boost sales in the Chinese yogurt’s market, which is estimated, to grow to more than USD 11 Bn (+57%) by 2015.

Revenue: USD 6.9 Bn (2013)
EBITDA Margin: 4.41%
EV/EBITDA: 19.3x (2013)
EV/EBITDA: 12.4x (2014est)

February 11th / Reuters

FOSUN GROUP (China) invested USD 31 M in SECRET RECIPE (Malaysia)

FOSUN GROUP, a leading private conglomerate in China, has invested USD 30.7 M in its first overseas investment in the chain restaurant industry. Although this is the conglomerate’s first overseas investment in the dining chain industry, FOSUN GROUP has taken up stakes in several domestic dining enterprises such as Shanghai-based chain SOUTH MEMORY.

February 18th / Want China Times


Wine & Spirits

LALIQUE chairman purchased Sauternes estate LAFAURIE-PEYRAGUEY

Swiss multimillionaire Silvio DENZ has purchased the 36 hectares of vineyards from French GDF energy corporation. The winery was awarded Sauternes Premier Cru classe in the 1855 Bordeaux classification. A partnership will be settle with LALIQUE crystal maker for the creation of an exceptional bottle.

Average annual production 60.000 bottles

February 5th/ IDEAL WINE

RAPHAEL MICHEL (France) acquired 100% of CLAUDE NICOLAS (France)

The Merchant of the Rhone Valley, Raphael Michel announces the acquisition of 100% stake in the company Claude Nicolas vintner South West. The deal was possible after the recent fundraising of EUR 50 M of Raphael Michel. The companies have additional skills that will create new impulse.

Revenue CLAUDE NICOLAS: EUR 7M (2012)

February 25th/ Raphael Michel

HEALTH & BEAUTY

Pharmaceuticals

ACTAVIS PLC (IRL) acquired FOREST LABORATORIES (US) for USD 25 Bn

The transaction will merge the world fastest growing specialty pharmaceutical companies combining revenues anticipated to USD 15 Bn for 2015. It is expected to double earnings by 2015 and 2016, and generate FCF of more than USD 4 Bn in 2015.

EV/Revenue: 3.8x

February 25th/ BLOOMBERG


Cosmetics & Toiletries

NESTLE acquired 100% of GALDERMA (Switzerland) from L’OREAL (France)

NESTLE has taken 100% control of skin-care company GALDERMA by acquiring 50% it doesn’t own from partner L’OREAL. This deal will continue to widen the scope of NESTLE’s activities in skincare.

Revenue: EUR 1.6 Bn (2013)
EV/Revenue: 1.9x
EV/EBITDA: 17.5x

February 11th / WSJ

L’OREAL acquired DECLEOR & CARITA from SHISEIDO (Japan) for EUR 230 M

L’OREAL world leader cosmetic bought the brands appreciated by beauty spas. Together, they generate a revenue of EUR 100 M and are present in 146 countries in the world. SHISEIDO is continuing strategy to concentrate activities over existing countries in Asia.

Revenue DECLEOR & CARITA: EUR 100 M (2013)

February 20th /FUSACQ


Fashion

TITAN (India) partnered with MONTBLANC (Germany) for single brand retail

Watch retailer TITAN INDUSTRIES and luxury goods maker MONTBLANC INTERNATIONAL has entered into 49:51 JV for establishing operations in India for the purpose of carrying on business for sale of MONTBLANC products across India.

February 28th / DealCurry

TEMASEK (Singapore), CEYUAN and SAIF (China), IDG (USA) invested USD 100 M in VANCL (China)

VANCL, China’s largest online clothing retailer has raised more than USD 100 M in funding from existing investors TEMASEK HOLDINGS, IDG CAPITAL PARTNERS, CEYUAN VENTURES and SAIF PARTNERS. The transaction was completed by the end of January 2014.

February 12th / AVCJ

INDUSTRY & CLEANTECH

Renewable Energy

EMERTEC FUND and BPIFRANCE (France) invest EUR 2.6M in IJENKO

Eco-technologies funds are investing EUR 2.6 M in IJENKO the European Service platform form management of residential energy and the connected home. This new investment will enable the company and its management to pursue ambitious expansion plans during this phase of strong operational growth.

February 20th/ PRNW

IFC (US) is planning to invest USD 25 M in Asia Environmental Partners II fund from OLYMPUS CAPITAL (US)

Asia Environmental Partners, a UDS 300 M target size fund was launched in 2008 by Olympus Capital and it focuses on the fast growing environmental and clean energy industries across Asia including India, China, India, Japan, South Korea and Southeast Asia.

IFC’s total investments in clean-tech venture capital reached $190 Mn in last October, helping boost clean-tech development and innovation in emerging markets.

February 24th / DC

NEW TECHNOLOGIES

Social Media

RAKUTEN (Japan) acquired VIBER (Israel) for USD 900 M

Japanese e-commerce giant RAKUTEN bought Call & Messaging App provider VIBER for USD 900 M in an all-cash deal. VIBER based in Cyprus has 300 M registered users. This acquisition will allow RAKUTEN to more than double its number of users & offers the opportunity to reach out to a younger generation for the Japanese company.

Net Loss (2013): USD 30 M

February 14th / Reuters

EBAY (US) leads USD 134 M investment in SNAPDEAL (India)

EBAY is leading a USD 134 M investment (series F funding) in Indian online shopping website SNAPDEAL. EBAY contributed the major part of this investment, while existing investors took part in a smaller scale. The investment could lead to an outright buyout down the line.
Revenue (2012): USD 90 M
EV: USD 500 M
EV/Revenue: 5.6x


February 27th / Tech In Asia

FACEBOOK (US) acquire WHATSAPP (US) for USD 19 Bn

FACEBOOK announced its acquisition of instant messaging app WHATSAPP for USD 19 Bn. The deal will be made in cash & stock, with FACEBOOK shares making USD 12 Bn & USD 4 Bn to be given in cash. There will also be an additional USD 3 Bn in Restricted Stock Units (RSU).

450 M of users/months

February 20th / VC Post& Tech Crunch


E-Media

TENCENT (China) buys 20% stake in Chinese review website DIANPING (China)

TENCENT HOLDINGS LTD acquired about 20% stake in DIANPING, the operator of a YELP-like website in China, to strengthen location-based services offered by Asia’s largest internet company. The acquisition will let TENCENT tap into DIANPING’s almost 100 M monthly active users who access the website’s reviews & discounts for food & entertainment.

Revenue (2012): USD 928 M (+17.9% YoY)
Net Profit (2012): USD 236 M (+6.7% YoY)

February 20th / Bloomberg